Tax Season Debt Collection Strategies and Why They Matter

For many businesses, the holiday shopping season can make or break their year, constituting almost half of their annual sales. Similarly, the collection industry experiences a significant boost during tax time, with IC System witnessing up to a 30% increase in collections for our clients. This surge is attributed to consumers using their tax refunds to settle past-due accounts. Much like retailers gearing up for the holiday rush, being at IC System before and during tax season requires strategic planning to secure a position as the first creditor on consumers’ reimbursement lists.

Working with IC System during tax season feels akin to stepping into a store on November 1st, witnessing the transition from Halloween decorations to festive Christmas displays. The focus is entirely on tax season, with everyone working towards the common objective of maximizing recoveries for our clients by securing a prime spot on the consumer’s priority list. So, how do we achieve this?

Our analysts meticulously examine data from our extensive warehouse and study refund dispersal patterns well in advance to predict the trends of the upcoming tax season. Questions like when consumers will receive their refunds and the optimal timing for additional letters and targeted tax season campaigns become critical for success.

Preparing for tax season at IC System involves comprehensive seasonal training, mirroring the approach adopted by many retailers. We tailor our collection strategy to equip our representatives with the skills needed to achieve positive financial outcomes for consumers. A specialized tax season course is provided to both new and experienced representatives, emphasizing active listening skills essential for satisfactory resolutions. Negotiation skills, including setting up payment arrangements, are coached, often commencing late in the fourth quarter or early in the first quarter to ensure consumers have payment plans in place before receiving their tax refunds. In certain cases, settlement amounts for lump sum or multi-payment resolutions are also negotiated.

Businesses seeking a higher rate of return during tax season can benefit by entrusting more accounts to IC System. It is crucial for creditors to capitalize on this opportune time by swiftly clearing out any accounts receivable backlogs and submitting them for collection. Just as holiday shoppers snag the best deals during Black Friday and Cyber Monday, clients dealing with bad debt on their books can optimize IC System’s services by promptly submitting accounts for collection.